Crypto Market News: Coinbase Disowns Memecoin After $15M Crash Sparks Outrage

Coinbase has stepped back from a disputed token linked to its Base network after it quickly surged in value before crashing within minutes. The token, created on the Zora platform and linked to Coinbase’s Base network, was introduced with the message “Base is for everyone.” It was shared on Base’s official X account on April 16.

Soon after the token went live, its market cap spiked to $17.1 million, according to DEX Screener. But within just 20 minutes, it plunged to $1.9 million—a loss of nearly 90%. The sudden crash sparked strong criticism from users and developers online, with many claiming that Base had promoted the token without offering enough clarity.

The Base team later referred to a disclaimer on the token’s Zora page. It stated that posts shared on the platform are meant for public communication and not as investment opportunities. The message also made it clear that no actions would be taken to raise the value of the token.

Coinbase Responds, Says No Intention to Profit

A representative for Coinbase confirmed that Base had no commercial interest in the token. According to the token’s details, 10 million tokens out of a 1 billion total supply were allocated to Base, with a pledge that none would be sold. The statement also mentioned that any earnings from transaction fees would be directed to support grants for developers building on Base.

Zora platform data shows that Base has received over $61,000 in fees from the token’s activity, while trading volume has exceeded $26 million. Despite the disclaimer, the token’s launch has drawn strong reactions.

A user on X wrote, “This move damaged trust in Base—people expect better from platforms with real backing.” Others questioned the decision to share the token without clearly communicating its risks.

Traders Point to Unfair Token Launch Activity

Harrison Leggio, co-founder of the crypto firm g8keep, revealed that early access traders took advantage of the token’s launch. He traced two wallets that acquired 21% of the total supply for roughly 2 ETH, valued at approximately $3,200 during the transaction. These tokens were then transferred and sold, generating a combined profit close to $300,000.

Leggio described the event by saying, “The drop wasn’t just fast — it was predictable. Those who got in first knew exactly what they were doing.” The activity raised concerns among observers about fairness in token launches.

Follow-Up Token Sees Similar Pattern

Roughly an hour after the first token collapsed, Base shared another Zora post linked to a crypto event in New York. This post generated a second token, Base @ FarCon 2025. The new token hit a high of around $987,000 before falling over 75% within minutes. It was later trading near $230,000.

Base creator Jesse Pollack has defended the use of onchain content creation, saying in a post, “Publishing content this way is how we push things forward. It won’t look perfect at the start, but it’s worth exploring.” Pollack has created dozens of tokens on Zora in recent months, encouraging developers to use blockchain for public media and interaction.

Despite the explanations, many users have said the rollout lacked proper communication. 

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